Tesco 2012 Annual Report Download - page 23

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The Fresh & Easy shopping trip
Our Fresh & Easy business is about
wholesome, fresh, high-quality food in the
heart of the neighbourhood, with great staff
giving the best customer service. We have
made changes this year to bring out these
features and give them more prominence in
our stores. With a friendlier store environment
and atmosphere, the quality of our fresh and
prepared produce more apparent and the
launch of our Friends card to thank our loyal
customers, we have driven 12% like-for-like
sales growth this year and total sales
growth of 27%.
The journey to profitability
The results of these changes mean that we
are more confident about the outlook for the
business, although clearly much remains to
be done. We have reduced trading losses by
18% and are on track for another significant
reduction in 2012/13, even if the timing of
break-even will now be later than our earlier
expectation. This is because we will focus on
more stores reaching profitability first, before
pushing on faster with the expansion we
need to create sufficient scale to cover our
overheads. We ended the year with 185 stores
and will have approaching 230 stores by the
end of the coming year.
The changes we have
made to stores this
year are building real
momentum in Fresh &
Easy, driving growing
customer numbers and
sales and delivering
reduced losses for the
first time.
Fresh & Easy: progress in the United States
Friends loyalty card
thanks our customers
for shopping with
Fresh & Easy
Customers can see and
feel the quality of our
loose fresh produce
Welcoming
customers with
new fresh ranges:
flowers, fresh bread
and coffee to go
Fresh & Easy superstars go
the extra mile for customers
and help create a culture of
personal service
Doors on our fridges and
freezers, wooden floors and
brighter walls all make our
stores more inviting for
customers
Scan here to hear more
from our Fresh & Easy
colleagues, or visit www.
tescoplc.com/ar2012/
freshandeasyvideo
New prepared ranges
from the Fresh & Easy
Kitchen, offering
wholesome, natural
and tasty meals
Tesco PLC Annual Report and Financial Statements 2012 19
STRATEGIC REVIEW PERFORMANCE REVIEW GOVERNANCE FINANCIAL STATEMENTSOVERVIEW
Chief Executive’s review Strategy in action Business model